The beginning of another year means tax season is quickly approaching, and we want to ensure that both you and your end users are up to speed on what to expect from Dwolla regarding Form 1099-Ks. To learn more about Form 1099-Ks at Dwolla check out this blog post.
Since the IRS and states are targeting voluntary compliance on income reporting, Dwolla is required to report on gross payments received by users to the applicable agencies. In addition, Dwolla will send a Form 1099-K, with the name “Dwolla, Inc.” displayed on the form, to your end users who meet the federal/state transaction and/or dollar amount threshold.
If you are an end user of a Dwolla Client and have met the federal reporting threshold or the reporting threshold of your state, you can follow this link to fill out the required W9 form needed.
Dwolla will send an official list of qualifying end users to each of our Clients for them to reach out to end users as well. That communication will look similar to the following:
Dwolla, Inc., our payment partner, will file a tax Form 1099-K with the IRS and relevant state agencies and send you a 2019 Form 1099-K if you meet the federal or applicable state reporting thresholds.
Both the federal and state Form 1099-Ks are information returns and the gross payments reported on a Form 1099-K do not necessarily represent reportable income. The form should be used in conjunction with other tax records (bank statements, invoices, etc.) to report taxable income, if any.
Please consult your tax advisor to determine your tax reporting requirements.
For any questions regarding Form 1099-Ks, please contact us at firstname.lastname@example.org.